zsteve, I just wish I could see an actual Whittington report in all its glory. I have a feeling they're probably really funny. For example, from Reuters:
biz.yahoo.com
Tuesday August 17, 3:04 pm Eastern Time
RESEARCH ALERT - Micron kept as strong buy
NEW YORK, Aug 17 (Reuters) - Banc of America Securities said Tuesday that analyst Rick Whittington reiterated a strong buy on chip maker Micron Technology Inc.
-- Discounted market talk that some personal computer makers were selling off inventories of dynamic random access memory chips, Micron's main product.
-- ''While we can neither confirm not deny investor stories of 'back-door' sales of DRAMS from large PC makers, we can only point out that some of this occurs in good times or bad,'' Whittington said in a note.
Are we at the State Dept. or the DOD doing a press conference on subjects dealing with sensitive national security, military and diplomatic issues...
...or are we doing securities analysis?
-- Recommended investors use recent share price weakness to build positions.
-- Kept estimates at a loss of $0.39 a share for fiscal 1999 and a profit of $1.50 for fiscal 2000.
No double-digit estimates?
That sucks. I guess I had imagined his estimate calculation to read something like:
"...if they make 1.50 in FY00 and 3.38 in FY01, and then continue growing earnings at that 125% annual rate for the next 10 years, we project that they will earn $4,987.88 per share in FY'10. Growth at the same pace over the next 25 years after that, would put their earnings per share at roughly $3,180,379,528,490 in the year 2035.
Assuming a modest net margin of 10%, these earnings show tremendous revenue growth ahead, since by the year 2010 MU's revenues would account for 105% of projected US GDP. By the year 2035, MU's revenues would be roughly 30,642,099,197.32% of projected US GDP. Since this is clearly impossible, the implication is equally clear - the Company will have substantially expanded its international operations..."
"Putting a conservative multiple of 18 times on our earnings estimates, our target price for the year 2010 is $1.02 million and for the year 2035 is $56.2 trillion. This would mean that a single share of Micron Techology would be worth roughly twice the projected US GDP for 2035. Clearly, you can see why we are so bullish on the Company..."
Now that's the type of stuff out of Whittington I'd like to see.
None of this namby-pampy 1.50 EPS in FY00 stuff <g>
Good trading,
Tom |
